BENGALURU- Gold prices were steady on Thursday, hovering close to record highs, on expectations of another big US rate cut this year, although gains were limited ahead of remarks by key Federal Reserve policymakers later in the day.

Spot gold was up 0.2 percent at $2,661.25 per ounce, as of 0334 GMT. Bullion hit a record high of $2,670.43 on Wednesday. US gold futures were steady at $2,684.50.

“A mild bounce from the US dollar has managed to keep the gold price in check, however with markets still anticipating more aggressive cuts from the Fed between now and year-end, the risk appears to be to the upside for the gold market,” said said Tim Waterer, chief market analyst at KCM Trade. 

Bullion has risen nearly 29 percent so far in 2024 and hit record highs several times this year, largely fueled by monetary policy easing by major global banks and geopolitical concerns.

Lower rates reduce the opportunity cost of holding bullion, which is also viewed as a safe asset amid economic and political turmoil.

Last Wednesday, the Fed delivered a 50-basis-point rate cut, with traders seeing a 62 percent chance of an additional half-percentage-point reduction in November, according to theCME FedWatch Tool.